I just ran across this tidbit on hackingnetflix.com:
The blog sort of makes a reference to the idea, not the fact of using the Kindle concept as a platform for pushing video content to Kindle/Kindle-like devices. Not sure what such a marginal idea would mean for the costs to not only Netflix users as there is no way streaming video over the MMB connection will stay free unless Amazon also has their eyes set on buying Sprint (not an unrealistic idea given Sprints precarious position as a cell provider) simply to use the existing infrastructure as a distribution method for content from Amazon. So, there could be something to the idea eventually. I doubt it would be anytime soon but still, an interesting idea for those people who want a more multifunction device.
And lets keep the "I'm never going for that because I just want a reader device" noise to a minimum as we know that already, the idea here is to discuss what such a device could mean the the whole idea of the reader merging with the various media tablets which have all pretty much never delivered on the promises.
And yeah, it has a LONG way to go before it makes sense on a Kindle-like device...but it will happen eventually and you all know it. And I could see the acquisition as on my Roku box we already get Netflix (of course) as well as Amazon Video OnDemand which is way to expensive compared to my Netflix subscription. But Amazon could use Netflix to market sales of DVD's as well as books related to the content you view on Netflix. Seems like a nice match...
The real impediment I would see is distribution to handheld devices of the Netflix content. Unless Amazon bought someone like Sprint, who as I mentioned earlier has been in financial trouble for years now but has a very solid wireless broadband (usually called mobile broadband or MBB). Sprint has been looking for a real partner for a long time but nothing has ever worked. AT&T seems to deliver better MBB speeds as I used them for a long time through a small WISP called Millenicom where you can have true unlimited MBB for about $50 or $60/mo, uncapped. I used both Sprint's network and AT&T's network and found AT&T far faster but I eventually learned the USB EVDO modem supplied has pretty strange issues so the Sprint network might have been as fast my my device was not up to the task.
It would be a very interesting move by Amazon to garner both the ebook crowd as well as the folks who enjoy a good movie or TV show when not in the mood to read. I could see Amazon charging like $5 to stream a movie from either NF or Amazon's service to a Kindle-like device which to me seems fair as it would only be casual use for a lot of us...
So have at it but please read the articles first...then WAG...I honestly suspect this rumor is kinda like the Apple Tablet, it's not coming anytime soon if at all...heck it's not even breathing hard yet, if ever.